What Homeowners and Renters Insurance Does Not Cover

As a home owner or renter insurance policy holder, you should always know that there are some perils that your policy will not cover. It is vital to understand the limitations of your policy especially if you are staying in areas which are affected by disasters that your policy might not cover the damages caused by those disasters that are specific to your area.


When you are living in areas that a prone to floods you should make sure that you get a policy cover that would have that clause inserted, this is due to the fact that most insurance policies do not cover for disasters that are related to floods. Flood insurance should be purchased without any doubt especially when you have a mortgage on a house that is located in a high risk flood area. This should also apply if you live in areas that are not located in flood risk areas. You should not assume that it would never happen in your area as no one has the power to control natural disasters. It has been said that most flood insurance claims come from areas that are of moderate to low risk. This is due to the fact that water causes a lot of damage to property, be it electronic or wood furniture, thus; if you are not financially prepared it could be rather devastating. This applies to both tenant and landlord.

Valuable personal property

Most policies; home and renter’s policies do not cover or offer sufficient coverage on your personal property. For example, things such as jewelry (diamond necklace, diamond ring, gold chain, etc.). Thus; you would need a clause that would help you recover your expensive personal property which might not be included in the standard policy. You will need to get a valuable personal property insurance that covers such expensive property even when it gets stolen, lost or damaged. This policy would help you protect your possessions from all risks that may befall your property.

Broader personal liability

This usually happens to all of us when we have employees, relatives or children that are living with us at our homes. For example, a gardener might mistakenly hurt himself with a lawnmower within your premises. This means you will need an extra umbrella cover that would help you cover all those liabilities and subsequently, this would give you an additional peace of mind. Therefore; I would advise you to get the additional personal liability insurance cover to secure yourself from such unexpected expenses which can be really expensive.


Most insurance policies do not cover earthquake damages, hence; as a property owner you should find a policy that could assist you recover your loses after an earthquake. The earthquake cover is purchased as add on to your standard policy.  Make sure that you have purchased that add on to your current cover if in an area that can get earth quakes. If you have once experienced the aftermath of an earthquake, then you know how devastating it could be and what kind of damage it can cause to any property. When an earthquake occurs quite a lot happens during that period, there would be massive shaking, and cracking that leads to entire buildings being demolished and almost all your possessions can be destroyed. It might be an extra dollar that you will be paying but that dollar would prove to be invaluable when you are making your claim after a devastating earthquake.

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About the Author: Christie Morgan

I am a former Licensed Real Estate Agent that absolutely loves helping people find the home of their dreams. I also enjoy interior design, reading, writing, traveling, and spending time with my two cats.